SJM Holdings Limited announced today that its adjusted EBITDA declined year-on-year to a negative HK$200 million (US$25.8 million) in the first quarter, a decrease of 118.6 per cent.

The gaming company made the announcement in a statement to the Hong Kong Stock Exchange.

The statement said that the company’s first-quarter results were “severely impacted” by the COVID-19 outbreak, which led to the government-ordered closure of Macau’s casinos for 15 days in February, “as well as ongoing restrictions on entry from the mainland, Hong Kong and other locations, curtailment of transportation channels and quarantine requirements.”

Adjusted EBITDA is “earnings after adjustment for non-controlling interests and before accounting for interest income and expense, tax, depreciation and amortisation, donations, gain on disposal of property and equipment and share-based payments,” according to the statement.

Adjusted EBITDA Margin in the first quarter decreased to negative 5.7 per cent from 12.4 per cent in the same quarter of last year, the statement pointed out.

Profit attributable to the owners of the company declined to a net loss of HK$409 million, a year-on-year decrease of 148.1 per cent.

According to the statement, SJM Holdings’ gross gaming revenue accounted for 13.3 per cent of Macau’s casino gaming revenue in the first quarter, as compared with 14.1 per cent a year earlier.

The statement also said that the Grand Lisboa Palace hotel-casino resort in Cotai “is expected to open by the end of 2020.”

According to the statement, total net revenue fell 59.8 per cent to HK$3.479 billion, while net gaming revenue also dropped 59.8 per cent to HK$3.407 billion. The statement also said that in the first quarter four of its 20 casinos were “self-promoted,” while 16 were “third-party-promoted casinos.”

The statement quoted Ambrose So Shu Fai, vice-chairman and CEO of SJM Holdings, as saying that “SJM’s first-quarter results reflect the severe contraction in travel and tourism caused by the COVID-19 pandemic.” So added: “We are optimistic, however, about the potential for our market to begin recovering later this year.” He also praised the local and central governments for their “successful policies in controlling the outbreak.”

Macau’s economy has been severely affected since late January by the novel coronavirus outbreak, its tourism, gaming, retail and media sectors in particular.